Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,000 shares of its own stock at $20 cash per share. January 5 February 28 July 6 August 22 September 5 October 28 December 31 $ 1,100,000 70,000 400,000 $ 1,570,000 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. Paid the dividend declared on January 5. Sold 2,500 of its treasury shares at $24 cash per share. Sold 2,500 of its treasury shares at $16 cash per share. Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. Paid the dividend declared on September 5. Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Record the purchase of 5,000 shares of its own common stock for $20 cash per share. Note: Enter debits before credits. Date January 02 General Journal Debit Credit Record entry Clear entry View general journal Kohler Corporation reports the following components of stockholders' equity at December 31 of the prior year. Common stock-$20 par value, 100,000 shares authorized, 55,000 shares issued and outstanding Paid-in capital in excess of par value, common stock Retained earnings Total stockholders' equity During the current year, the following transactions affected its stockholders' equity accounts. January 2 Purchased 5,000 shares of its own stock at $20 cash per share. January 5 February 28 July 6 August 22 September 5 October 28 December 31 $ 1,100,000 70,000 400,000 $ 1,570,000 Directors declared a $4 per share cash dividend payable on February 28 to the February 5 stockholders of record. Paid the dividend declared on January 5. Sold 2,500 of its treasury shares at $24 cash per share. Sold 2,500 of its treasury shares at $16 cash per share. Directors declared a $4 per share cash dividend payable on October 28 to the September 25 stockholders of record. Paid the dividend declared on September 5. Closed the $388,000 credit balance (from net income) in the Income Summary account to Retained Earnings. Required: 1. Prepare journal entries to record each of these transactions. 2. Prepare a statement of retained earnings for the current year ended December 31. 3. Prepare the stockholders' equity section of the balance sheet as of December 31 of the current year. Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare journal entries to record each of these transactions. View transaction list Journal entry worksheet 1 2 3 4 5 6 7 8 Record the purchase of 5,000 shares of its own common stock for $20 cash per share. Note: Enter debits before credits. Date January 02 General Journal Debit Credit Record entry Clear entry View general journal
Expert Answer:
Answer rating: 100% (QA)
Required 1 Journal Entries Date January 2 Treasury Stock 164000 Cash 164000 To record the purchase o... View the full answer
Related Book For
Financial Accounting Information for Decisions
ISBN: 978-1259533006
8th edition
Authors: John J. Wild
Posted Date:
Students also viewed these accounting questions
-
The income statement, balance sheets, and additional information for Video Phones, Incorporated, are provided. Net sales Expenses: VIDEO PHONES, INCORPORATED Income Statement For the Year Ended...
-
DWYSYWD is the theme of this final essay. You identified several leadership behaviors that you wanted to become more comfortable with and use more frequently. How did you do in this regard? What were...
-
The forces F1, F2 and F3 with magnitude 2, 3 and 1kN respectively are applied at point K (Figure 1). a) Determine the resultant force of F1, F2 and F3. b) Calculate the moment M, created by the...
-
Fill in the missing amounts for the following bank reconciliation: Practice Exercise3 Bank Reconciliation March 31,20 Bank Statement Balance $3,764.00 Add: Deposit in transit $4,031.00 Deduct:...
-
The owner of a small retail store does her own accounting work. How would you measure the opportunity cost of her work?
-
(a) Explain how a nation could attempt to discourage large destabilizing international capital inflows under the Bretton Woods system by intervening in the spot market. (b) Can the same be done under...
-
The team-building process can best be described as participative, data-based, and ____________. (a) action-oriented (b) leader-centered (c) ineffective (d) short-term
-
Discuss the role of technology both in the nature of the service that Netflix provides and in the environment in which it competes. Feel free to expand by drawing on any personal knowledge you may...
-
Small changes in numbers in an integrand can result in very different methods required for integration. Consider the integral below. Assume 60 but b could be positive or negative in the answers...
-
MACRS depreciation expense and accounting cash flow Pavlovich Instruments, Inc., a maker of precision telescopes, expects to report pretax income of $424,000 this year. The company's financial...
-
What are some of the unique challenges and opportunities associated with keeping a research diary or log book as an international researcher conducting research in a different cultural context, and...
-
We are confronted with ethical challenges throughout our lives. With each decision we make, we are developing our personal ethical framework for decision-making. Identify a specific ethical dilemma...
-
What are some key qualities and skills that effective leaders possess & elaborate about the qualities?
-
TQM places the customer in the forefront of decision-making. It also looks at the concept of internal customer and supplier. It advocates that everyone in the organization is a customer and consumer...
-
Mr. Ironman sent an email to Mr. Spiderman and ask him Will you sell Unit # 801 of your Highrise apartment building, quote the lowest price. To which Mr. Spiderman replied, Lowest price for unit #801...
-
Add the purchase of land and a warehouse building from Prime Properties, check #1014, amount: $2,000, as a down payment on land $5,000 and a building $15,000. The balance was paid by signing a...
-
6 (a) Briefly develop a mathematical model of the behaviour of a copper-twisted pair cable (b) Derive the magnetic energy from: w given that: K + w, where the - - k symbols have their usual meaning...
-
What is the value of a call option if the underlying stock price is $20, the strike price is $22, the underlying stock volatility is 50 percent, and the risk-free rate is 4 percent? Assume the option...
-
Assume Polands currency (the zloty) is worth $.17 and the Japanese yen is worth $.008. What is the cross rate of the zloty with respect to yen? That is, how many yen equal a zloty?
-
Utah Banks bid price for Canadian dollars is $.7938 and its ask price is $.81. What is the bid/ask percentage spread?
Study smarter with the SolutionInn App